Sqn Asset Finance Income Share Discussion Threads

[chucko1] 31/3/2020 12:19

At 17p, as was, I really was not fussed how the anaerobic digestion issues were likely to play out. At 40p, I hardly care either, though is, by definition, around twice as important now!

When it was 17p, and the C shares were 40p, the rationale for switching one C for two normals was very, very strong. Far less so now.

[spectoacc] 30/3/2020 18:45

They likely won't have seen the hits yet, very few co's appear to have gone under, will take a few months of lock-down. But they might say who's stopped paying their interest.

Edit - wonder how the anaerobic digestion problems are going..

Edit #2 - oh, "before the end of March", can see that slipping, and will be for 29th Feb, encompassing none of the Covid-19/lock-down hit. I note my C-Shares were given a 97p NAV for that date, which I obviously don't trust one bit. Still hold them all tho.

A month or so's time should be more interesting, and the month after that. Hopefully the asset-backing is secure.

I fear the cancelling of the divi as early as 12 days ago may be instructive.

[robizm] 30/3/2020 17:35

The nav update is due tomorrow and hopefully not to bad

[chucko1] 30/3/2020 17:25

The price is less nonsense now. It’s only doubled since I last wrote, yet no one had anything to say. Quite revealing.

[chucko1] 25/3/2020 10:32

The price is nonsense. 45-50 is about right given the impairments to come, the liquidity crunch they are clearly worried about and overall risk. The fact that the spread with the Cs has remained an arithmetic constant and not a blend of arithmetic and geometric says it all. Bought some at 17p!!!

[robizm] 25/3/2020 10:19

There must be some value in these at this price even if you wrote off 50% of the dodgy bit.

[lord gnome] 18/3/2020 14:05

Yet another dividend goes west. They are dropping like flies. No income is safe in the current mad house world we inhabit.

[chucko1] 18/3/2020 13:26

This is a cross-currency swap and they will always have been receiving margin calls. By taking the swap off, they are now exposed to the changes in the GBP/USD FX rate. So far, it’s gone their way. But if it bounces back, then the revaluation of their US assets will not be so valuable. It’s a liquidity thing and everything they said made sense. They can always stop the dividend as that would help but that would imperil their REIT status. But likely they could get dispensation, though it would take time and the FX markets do not wait.

[spectoacc] 18/3/2020 09:34

Tricky with Forex! They won't be the only ones suffering with that, tho effectively they're realising the loss/leaving us with an extra unknown. Prob the least of our worries (I hold no SQN, only SQNX, but in size).

[cc2014] 18/3/2020 09:32

Quite a strangely worded RNS re margin calls. One is not supposed to get a margin call but instead manage the margin yourself before the margin call.

[spectoacc] 18/3/2020 07:37

"Whilst no lessees or borrowers are yet exhibiting new stress as a result of the COVID-19 virus and the exceptional governmental measures being taken, some are operating in sectors and geographies that could be adversely impacted. Accordingly, the Board believes that it is in shareholders' best interests to seek to preserve liquidity and act promptly and prudently now in advance of any further adverse foreign exchange moves which could create liquidity pressures for the Company. "

Must admit i'd not given any thought to the hedging margin calls, but the rest of the paragraph is reasonable.

[eeza] 05/3/2020 08:15

Small AD plant exited at small premium.
Larger ones still to be determined.

[spectoacc] 21/2/2020 07:33

Trying to drive traffic to his Twitter feed, posting on loads of threads. Don't click.

[spectoacc] 21/2/2020 07:09

"Mindful of feedback received from shareholders, the Company will be undertaking a review of its dividend policy as part of the Strategic Review. Until that review is completed, the Board intends, subject to solvency considerations, to continue to pay a dividend of 0.6042 pence per Ordinary share even though this is not fully covered by underlying income received. "


More weasel words - what does "Mindful of feedback..." mean exactly? That shareholders have begged for the divi to be cut?

It should be, of course - and plenty of SQN holders won't realise it's uncovered and due to go down.

C's sailing on nicely, tho monthly return slightly down (+0.49%).

[eeza] 20/2/2020 14:23

SDR still finding a few strays down the sofa.

[eeza] 17/2/2020 10:14

Buyers returning in the C's.

[spectoacc] 15/2/2020 13:48

And yet a total lack of RNS's from Schroders, after the initial fairly prompt one.

I'm very fond indeed of the C's. No AD, big yield, massive discount. There's bound to be some "needing some work" loans, is the nature of the beast, but so much in the price already.

But then I would say that.

Ords reasonable value IMO but I don't own any.

[eeza] 15/2/2020 09:17

SDR must surely be out of the C's now.
350k put thro at 78p and 600k at 77.50p.
So another 1 mill gone.

Should allow C's to drift up.

[eeza] 14/2/2020 15:48

Wishful thinking.

It's me age !!!

[spectoacc] 14/2/2020 15:45

@eeza - lol. Not sure if that's deliberate :))

[eeza] 14/2/2020 15:32

600k just put thro in C's at 87.50p.

[andyj] 14/2/2020 14:12

Motoring now. There seems a significant delay in this price between news and movement.